Europe’s Hotel Construction Pipeline Is Accelerating and Hitting All-Time Highs Amidst Concerns of an Economic Slowdown Ahead

/Europe’s Hotel Construction Pipeline Is Accelerating and Hitting All-Time Highs Amidst Concerns of an Economic Slowdown Ahead

Europe’s Hotel Construction Pipeline Is Accelerating and Hitting All-Time Highs Amidst Concerns of an Economic Slowdown Ahead

|2019-06-12T21:09:49-04:00June 10th, 2019|

June 10, 2019 – PORTSMOUTH, NH — Analysts at Lodging Econometrics (LE) report that Europe’s hotel construction pipeline continues its robust up-swing in 2019 with 1,670 projects/254,600 rooms, a remarkable 22% increase in projects and 19% increase in rooms year-over-year (YOY).

There has been an optimistic, upward trend in the European service and construction sectors, which is off-setting the weak outlook for exports and the on-going short-falls in manufacturing. New construction is being positively impacted by accommodative lending policies. Unemployment is at a 19-year low, yet an economic slowdown is still predicted for 2019.

There are 844 projects/133,620 rooms currently under construction and 480 projects/72,588 rooms planning to start construction in the next 12 months, both at record highs. The early planning stage stands at 346 projects/48,392 rooms, slightly off its record high at 2018 year-end.

New project announcements with 360 projects/50,337 rooms and construction starts with 223 projects/33,973 rooms have both reached all-time highs, both quarterly-over-quarter and on a rolling-four quarter basis. As a result of these positive pipeline trends, the LE forecast for new hotel openings will continue to soar with 390 new hotels/53,241 rooms anticipated to open in 2019 and a further 426 new hotels/61,490 rooms in 2020, a new record high.

Europe’s leading countries in the construction pipeline are Germany, which is at an all-time high, with 319 projects/57,152 rooms and the United Kingdom with 261 projects/37,910 rooms, marginally trailing the record set in 2018. Following are France and Portugal, both also at record highs, with 188 projects/22,537 rooms and 121 projects/12,190 rooms, respectively. Next is Poland with 91 projects/13,748 rooms.

The cities with the largest pipelines are London with 78 projects/13,285 rooms, Paris with 60 projects/9,255 rooms, Dusseldorf with 53 projects/10,347 rooms, Lisbon with 39 projects/3,457 rooms, and Hamburg with 31 projects/6,101 rooms.

Franchise companies with the largest construction pipelines are AccorHotels, at a record high, with 256 projects/35,073 rooms. Next is Marriott International with 208 projects/33,395 rooms, just short of its high set in 2018. Hilton Worldwide follows with 172 projects/26,466 rooms, and InterContinental Hotels Group (IHG) with 147 projects/24,483 rooms, also just shy of its 2018 high. These four companies account for 47% of the projects and rooms in the total pipeline.

The leading brands for each of these franchise companies are AccorHotel’s Ibis brands with 134 projects/16,901 rooms, Mercure Hotel, at an all-time high, with 28 projects/2,918 rooms, and Novotel with 25 projects/4,246 rooms. Marriott International’s top brands are Moxy with 64 projects/11,422 rooms, Courtyard by Marriott with 33 projects/5,758 rooms, and Residence Inn, at an all-time high, with 17 projects/1,607 rooms. Hilton Worldwide has Hampton Inn with 70 projects/ 10,790 rooms, Hilton Garden Inn 43 projects/6,416 rooms, and DoubleTree by Hilton 23 projects/2,985 rooms. IHG’s top brands include Holiday Inn Express with 72 projects/10,900 rooms, Holiday Inn 33 projects/7,541 rooms, and Hotel Indigo 13 projects/1,554 rooms.

About Lodging Econometrics (LE)

Lodging Econometrics is the leading provider of global hotel intelligence. Combining unparalleled industry experience, a real-time pulse on market trends and extensive knowledge of key decision-makers, LE delivers actionable business development programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies seeking to expand their real estate portfolios, and lodging industry vendors wanting to increase their sales. LE’s programs turn a client’s business goals into opportunities that advances their competitive advantage.

Contact: Colleen Brennan

[email protected]/

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